Earthquake Case History: 2010 Mw = 8.8 Mega-thrust Earthquake‚ Maule‚ Chile 5/2/13 By Travis Eddy 1. Introduction In early 2010 central south Chile experienced a Mw = 8.8 earthquake and large tsunami waves that devastated areas on the Chilean Pacific coast‚ nearby offshore islands‚ and areas near the epicenter. In addition to the tsunami‚ the earthquake had many other geological consequences including aftershocks‚ terrestrial and submarine land-sliding‚ elevation changes‚ and a gravity
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years period. The data is gathered from the Yahoo Finance. In order to make the analysis more meaningful there will be a benchmarking with a main competitor. The last part of the report conducts NPV analysis to find out the best investment option for the given scenario. The project with the highest NPV is likely to be most beneficial for the company. Subsequently conclusions will be drawn. Reason for Choosing Apple for this study I have a personal interest in this company as it is seen the
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sufficient target benchmark. Also known as "investment appraisal." Capital budgeting is a long-term economics decision making. Each potential project ’s value should be estimated using a discounted cash flow (DCF) valuation‚ to find its net present value (NPV). (First applied to Corporate Finance by Joel Dean in
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Financial Management Assignment - A Question 1a: Should the titles of controller and treasurer be adopted under Indian context? Would you like to modify their functions in view of the company practice in India? Justify your opinion? Answer to 1a: Controller & Treasurer are independent & they have their own Perspectives & Drivers as detailed below: Controller Responsibilities include‚ Double entry accounting‚ financial reporting‚ Fraud measure‚ detective controls‚ Financial restatement‚ Compliance
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Mini Case - The MBA Decision 1. How does Ben’s age affect his decision to get an MBA? Ben’s age is a very important factor which can affect his decision to get an MBA degree. Firstly‚ Ben is now 28 years old and expects to work for 40 more years. So he has an expected work life of 68 years. So the earlier he gets an MBA‚ the better for him. For example: probably it won’t benefit him much if he decided to get an MBA at the age of 60. No one would hire him as an investment banker even if
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to rank competing investments. In this case‚ our group using some tools which are Payback Period‚ Net Present Value (NPV) ‚ Profitability Index (PI)‚ and Internal Rate of Return (IRR). We are only using quantitative considerations that we think to be relevant and no other project characteristics are deciding factors in our selection of the best four projects. Payback Period NPV PI IRR Sum of Cash Flow Benefits Excess of cash flow over initial investment Project 1 6 years 22 days $ 73.09
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Flow Analysis Cash flow analysis on Exhibit 1 represents net cash flow calculation using the base assumption. According to this calculation‚ Nucor would have net present value of $(11.99) million which is a negative value. This negative value on NPV indicates potential unprofitable consequences after implementing SMS’s compact strip production (CSP); therefore‚ Nucor should not invest in this new technology. Scenario Analysis Instead of using the given assumptions‚ I have set two alternatives
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Case Study: ‘Ocean Carriers’ By: Alyssa Linder Wenliang Zhang Xhangoli‚ Eva 1. Daily spot hire rates are determined according to supply and demand of the shipping capacity. According to the article‚ the supply of ships available equals the number of ships currently in the fleet plus any new ships added‚ minus any scrapings and sinking. According to Exhibit 2‚ there are a limited number of ships older than 24 years which are likely to be scraped. For those ships under the age group
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994 Payback 3.49 years NPV $18‚994 IRR 14.03% a) What are the investment’s payback period‚ IRR‚ and NPV‚ assuming the firm’s WACC is 10%? SEE TABLE b) If the firm requires a payback period of less than 4 years‚ should this project be accepted? Be sure to justify your choice. Yes‚ since the payback of 3.49 is less than the maximum of 4 years. c) Based on the IRR and NPV rules‚ should this project be accepted? Be sure to justify your choice. Yes‚ since NPV > 0 and IRR > discount rate
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CAPITAL BUDGETING The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing. Oftentimes‚ a prospective project’s lifetime cash inflows and outflows are assessed in order to determine whether the returns generated meet a sufficient target benchmark. Also known as "investment appraisal." Generating investment project proposals consistent with the firm’s strategic objectives; Estimating after-tax incremental
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